A refugee settlement in Kota Kinabalu.
KUALA LUMPUR: Timber and construction firm NWP Holdings Bhd
is venturing into the utility business by taking up a 51% stake in Sinar Majumas Sdn Bhd, which has the rights to install and supply water and electricity to refugee settlements or villages in Sabah.
In a filing with Bursa Malaysia, the company said it had on Monday signed a conditional agreement to buy the equity interest from Almaniaga Sdn Bhd for RM1.5mil in cash.
Sinar Majumas, a wholly-owned subsidiary of Almaniaga, will supply electricity and water to 27 sites of settlements/villages.
NWP posted a loss after tax of RM2.04mil to RM3.68mil for the past full financial years from FY12 to FY16 from its timber and wood-based product business divisions.
On its rationale for venturing into utilities, NWP said it had taken the initiative to improve its income stream via construction works.
“Due to the nature of the construction industry, these construction projects may require a longer period to deliver result. Hence NWP is embarking on the project to further enhance its financial position,” it said.